In what circumstance may the borrower be charged for appraisals on a higher-priced mortgage loan?

In the context of higher-priced mortgage loans, regulations typically allow lenders to charge borrowers for appraisals under specific circumstances. In this case, the correct answer indicates that the borrower may be charged for only one of the appraisals.

This aligns with the regulatory framework designed to protect consumers, particularly in scenarios where multiple appraisals are requested. For example, if an additional appraisal is deemed necessary due to particular circumstances—such as when the initial appraisal is more than a certain percentage below the sales price—the lender can charge for that additional appraisal. However, they cannot charge for both appraisals indiscriminately.

On the other hand, options suggesting both appraisals can be charged or charging for each appraisal requested do not reflect the regulatory caps and consumer protections in place, which aim to limit the financial burden on borrowers. Furthermore, the notion that there would be no charge for appraisals does not hold true in the case of a higher-priced mortgage loan if an appraisal is indeed required. Understanding these nuances is crucial for anyone engaged in mortgage lending to ensure compliance with regulations and to protect the interests of borrowers.